GameStop, the US gaming retail chain that became a global meme stock phenomenon in 2021, has launched an unsolicited $56 billion takeover bid for eBay, offering $125 per share in a half-cash, half-stock deal that CEO Ryan Cohen says could create a combined platform capable of competing directly with Amazon.
The proposal was announced on Monday and values eBay at close to four times GameStop’s own market capitalisation.
GameStop quietly accumulated a roughly 5% stake in eBay before tabling the offer, and has secured a non-binding letter from TD Bank indicating approximately $20 billion of debt financing could be available for the transaction, as reported by Bloomberg.
The bid is structured as half cash and half GameStop stock, at $125 per share, representing a 20% premium to eBay’s closing price on Friday.
How Cohen wants the deal to work
Ryan Cohen, who turned GameStop from a failing bricks-and-mortar chain into a cash-rich entity through aggressive cost-cutting, is proposing to apply the same operational discipline to eBay at scale.
In a memo to investors, Cohen outlined a target of $2 billion in annual cost savings within twelve months of closing.
Cohen also argued that GameStop’s approximately 1,600 US retail stores could serve as a physical pick-up and returns network, differentiating a combined entity from Amazon in categories where in-person interaction adds value.
The pitch positions the deal as a bet that physical retail infrastructure, combined with eBay’s existing marketplace and customer base, could carve out durable e-commerce market share.
During a CNBC interview on Monday, Cohen declined to answer specific questions about how the deal would be financed, telling viewers “the details are on our website” when pressed, as reported by Yahoo Finance.
The response increased rather than reduced market scepticism about whether the transaction could actually close.
How eBay and the market are responding
eBay confirmed receipt of the offer in a statement on Monday, noting that no prior contact or discussion had taken place before the proposal arrived. The board said it would “carefully review” the offer, as reported by CBS News.
Market reaction suggested significant doubt. eBay shares climbed approximately 5% on Monday to around $109, well below the $125 offer price. The gap between the bid and the trading price is a standard signal that investors see meaningful risk of the deal not proceeding.
eBay’s board is expected to respond formally within weeks. If the offer is rejected, Cohen is likely to take the case directly to eBay shareholders, converting the process into a contested acquisition campaign.
GameStop’s ability to finance a transaction of this size, without a firm commitment in hand, remains the central unanswered question.
